|AUTHOR||Nicola Jones, Caroline Harper, Sara Pantuliano and Sara Pavanello with Kim Kyunghoon, Shreya Mitra and Katie Chalcraft|
|TOPIC||Economic crisis and recovery|
The current financial crisis, which began in mid-2008 in the developed world, has had a major adverse impact on economic performance in Europe and North America in particular. Many Organisation for Economic Co-operation and Development (OECD) countries have entered recession, with increasingly visible contagion effects in the rest of the world. Some macroeconomic indicators of the global downturn in Europe and Asia are showing initial signs of stabilisation (EIU, 2009), but the effects of the crisis with regard to poverty and vulnerability in both the developed and the developing world are likely to continue for some time. For instance, the World Bank estimates that the ‘Triple F’ crisis (food, fuel and finance) will increase the number of global poor by between 53 and 64 million people in 2009, based on estimates of those living on less than $2 and $1.25 per day, respectively (Chen and Ravallion, 2009). Meanwhile, the UK Department for International Development (DFID) estimates that an additional 90\ million people will be living on less than $1.25 per day by the end of 2010 (McCord and Vandermoortele, 2009).